The Government of Jamaica has reached an agreement with Terminal Link consortium for the privatisation of the Kingston Container Terminal (KCT).
According to the Prime Minister Portia Simpson Miller, the agreement is a long-term concession to finance, expand, operate, maintain and transform the KTC. She commented:
"The agreement contemplates dredging, optimisation and expansion of KCT in two phases, which will include dredging of the ship channel, turning basin and some berths to accommodate post-Panama vessels. Phase one also contemplates significant civil works to retrofit and deepen some areas of the berths."
KCT is a regional container transshipment hub with an annual capacity of 2.8 million TEU and an annual throughput of 1.1 million. Further development of the Kingston Container Terminal is expected to facilitate the passage of Post-Panamax container vessels with a nominal capacity of 12,000 TEUs in comparison to the existing Panamax vessels with a capacity of 4,500 TEUs currently transiting the Panama Canal.
The bidding stage of the KCT PPP transaction began on January 16, 2014. The confidential information memorandum (CIM) and the request for proposals (RFP) were issued to the three pre-qualified bidders later. The draft Concession Agreement was subsequently issued on February 14. On 20 May 2014 we reported that the deadline for the submission of bids was extended to July 3.
The Government began negotiation with the consortium in October 2014. At that time the Minister of Transport, Works and Housing, Dr. Omar Davies, stated:
I have given the negotiating team a month to provide me with a definitive statement on progress in their discussions with the representatives of Terminal Link. Should these negotiations lead to a preliminary agreement, which satisfies the criteria laid down by the Government of Jamaica, steps will be taken to move towards a final agreement in the shortest time possible.